Ann: Half Yearly Report and Accounts, page-15

The main problem KPO management would have faced for the past six months is soaring inflation and rapidly rising gas prices.
Anyone who thinks capital cost inflation on projects like Saddle Hills is running at 5 per cent is not in the real world.It is probably more like 15 per cent and then there are supply chain issues.
The rise in gas prices and capex will translate into much higher power prices in the medium term.
But if capex on a gas fired peaker is going up it is nothing compared with the increase in capex now occurring for windmills and solar.
The more thy shut down coal fired power stations the greater the need will be for gas fired peakers which might operate only 25 per centg of the time but will be charging 50 cents a KWH or more.
I suspect the underlying KPO business model will get stronger but in the meantime it will prove challenging to maximise KPO equity in the first project.
The major industry players understand the numbers and can see the writing on the wall with the impact of coal fired closures.
The fall in the capex and operating costs of wind and solar was a direct result of lower energy costs so those costs are going to go through the roof
and mirror the rise in oil prices.
Chinese polysilicon prices (the main component in solar modules) surged 300 per cent in the 4th quarter of 2021.
I am confident KPO will get full approval for Saddle Hills shortly and that permit in itself probably justifies the current market capitalisation.
KPO could do it in stages making financing easier but the underlying value of the permit would still be there.
DYOR